EUR/JPY Forecast January 23, 2017, Technical Analysis

The EUR/JPY pair rallied slightly on Friday, as we continue to see buying in a market that had been very negative the previous week. Looking at the longer-term charts, it seems to me that we are going to continue to go higher, and thus I think we’re going to reach towards the 125 level above. A pull back offers value, and I believe the traders will continue to take advantage of this. The 120-level underneath is massively supportive and essentially the “floor.” With this being the case, I have no interest in selling and believe that longer-term we will eventually break out to the upside.